In return for its technical management of our ships, our Manager receives a daily fixed fee per vessel payable on a monthly basis once the vessels have
been delivered. The initial fixed fees are $4,000 per day for each 2500 TEU vessel constructed by Jiangsu and chartered to CSCL Asia; $4,200 per day for each 2500 TEU vessel constructed by Jiangsu and chartered to K-Line; $4,200 per day for each
3500 TEU vessel; $4,500 per day for each 4250 TEU vessel constructed by Samsung and chartered to CSCL Asia; $4,725 per day for each 4250 TEU vessel constructed by New Jiangsu and chartered to CSAV; $5,600 per day for each 4500 TEU vessel; $5,750 per
day for each 4800 TEU vessel; $4,800 per day for each 5100 TEU vessel; $6,000 per day for each 8500 TEU vessel; $6,500 per day for each 9600 TEU vessel; and, $6,750 per day for each 13100 TEU vessel. We believe these are fair market fees.

The initial fixed fees are in effect through December 31, 2008 and thereafter will be subject to renegotiation every three years,
provided that the fee for the three-year period beginning January 1, 2009 will not be less than the initial technical services fee.

With respect to fee renegotiation, if our Manager and the board of directors are unable to reach an agreement an arbitrator will determine the fair market fee. In the event that we acquire an additional vessel, the technical services fee in
respect of that vessel will be the same fee as is applicable to vessels of the same size. If there is a material difference in the operating costs associated with the new vessel, or if there are no vessels of a similar size already owned by us, we
will negotiate a fair market fee with our Manager. If we are unable to reach an agreement an arbitrator will determine the fair market fee.

In return for providing us with strategic and administrative services, our Manager is entitled to a service fee not exceeding a maximum of $6,000 per month, and to reimbursement for all of the reasonable costs and expenses incurred by it
and its affiliates in providing us with such services. Our Manager provides these services to us directly but may subcontract certain of these services to other entities, including its affiliates. The management agreements provide that we have the
right to audit the costs and expenses billed to us and also provides for a third party to settle any billing disputes between us and our Manager.

In connection with providing us strategic services, our Managers affiliate acquired 100 incentive shares for $1,000 concurrently with our initial public offering. The incentive shares are entitled to a share of incremental dividends,
based on specified sharing ratios, once dividends on our common and subordinated shares reach certain specified targets beginning with the first target of $0.485 per share. On January 24, 2008, we announced a quarterly cash dividend increase to
$0.475 per common and subordinated shares. Under the terms of the Initial Management Agreement, we have the right to reacquire the incentive shares from our Managers affiliate at a nominal price under specified circumstances and we have the
obligation to reacquire them at a price determined by independent parties under other specified circumstances.

The following table further
details this allocation among the common, subordinated and incentive shares:

Allocation of IncrementalOperating Surplus Paidas a Dividend

Quarterly Common andSubordinated Share DividendTarget Amount

Common andSubordinatedShares

IncentiveShares

Below First Target

up to $0.485

100

%

0

%

First Target

above $0.485 up to $0.550

90

%

10

%

Second Target

above $0.550 up to $0.675

80

%

20

%

Third Target

above $0.675

75

%

25

%

The table below illustrates the percentage allocations of operating surplus distributed between
the common shares, subordinated shares and the incentive shares as a result of certain quarterly dividend amounts per common

and subordinated share. The amounts presented below are intended to be illustrative of the way in which the incentive shares are entitled to an increasing
share of dividends based on the target dividend levels described above as total dividends increase. This is not intended to represent a prediction of future performance.

In
return for its technical management of our ships, our Manager receives a daily fixed fee per vessel payable on a monthly basis. The initial fixed fees are $4,500 per day for each 4250 TEU vessel, $5,750 per day for each 4800 TEU vessel, $6,000 per
day for each 8500 TEU vessel and $6,500 per day for each 9600 TEU vessel. The initial fixed fees are expected to be $4,000 per day for each 2500 TEU vessel, $4,200 per day for each 3500 TEU vessel and $4,800 per day for each 5100 TEU vessel. We
believe these are fair market fees. The initial fixed fees for the 4250 TEU, 8500 TEU and 9600 TEU vessels are in effect through December 31, 2008 and thereafter will be subject to renegotiation every three years, provided that the fee for the
three-year period beginning January 1, 2009 will not be less than the initial technical services fee. The initial fixed fees for the 3500 TEU vessels and the 4800 TEU vessels are in effect through December 31, 2008 and thereafter will be
subject to renegotiation every three years. Similarly, the initial fixed fees for the 2500 TEU vessels and the 5100 TEU vessels are in effect through December 31, 2011, and thereafter will be subject to renegotiation every three years. With
respect to fee renegotiation, if our Manager and the board of directors are unable to reach an agreement an arbitrator will determine the fair market fee. In the event that we acquire an additional vessel, the technical services fee in respect of
that vessel will be the same fee as is applicable to vessels of the same size. If

36

there is a material difference in the operating costs associated with the new vessel, or if there are no vessels of a similar size already owned by us, we
will negotiate a fair market fee with our Manager. If we are unable to reach an agreement an arbitrator will determine the fair market fee.

In return for providing us with strategic and administrative services, our Manager is entitled to a service fee not exceeding a maximum of $6,000 per month, and to reimbursement for all of the reasonable costs and expenses incurred by it
and its affiliates in providing us with such services. Our Manager provides these services to us directly but may subcontract certain of these services to other entities, including its affiliates. The management agreement provides that we have the
right to audit the costs and expenses billed to us and also provides for a third party to settle any billing disputes between us and our Manager.

In connection with providing us strategic services, our Managers affiliate acquired 100 incentive shares for $1,000 concurrently with our initial public offering. The incentive shares are entitled to a share of incremental dividends,
based on specified sharing ratios, once dividends on our common and subordinated shares reach certain specified targets beginning with the first target of $0.485 per share. Under the terms of the management agreement, we have the right to reacquire
the incentive shares from our Managers affiliate at a nominal price under specified circumstances and we have the obligation to reacquire them at a price determined by independent parties under other specified circumstances.

In return for its technical management of our ships our Manager receives a daily fixed fee per vessel payable on a monthly basis. The initial fixed fees
are $4,000 per day for each 2500 TEU vessel, $4,200 per day for each 3500 TEU vessel, $4,500 per day for each 4250 TEU vessel, $6,000 per day for each 8500 TEU vessel and $6,500 per day for each 9600 TEU vessel. We believe these are fair market
fees. The initial fixed fees for the 4250 TEU, 8500 TEU and 9600 TEU vessels will be in effect through December 31, 2008 and thereafter will be subject to renegotiation every three years, provided that the fee for the three-year period
beginning January 1, 2009 will not be less than the initial technical services fee. The initial fixed fees for the 3500 TEU vessels will be in effect through December 31, 2008 and thereafter will be subject to renegotiation every three
years. Similarly, the initial fixed fees for the 2500 TEU vessels will be in effect through December 31, 2011, and thereafter will be subject to renegotiation every three years. With respect to fee renegotiation, if our Manager and the board of
directors are unable to reach an agreement an arbitrator will determine the fair market fee. In the event that we acquire an additional vessel, the technical services fee in respect of that vessel will be the same fee as is applicable to vessels of
the same size. If there is a material difference in the operating costs associated with the new vessel, or if there are no vessels of a similar size already owned by us, we will negotiate a fair market fee with our Manager. If we are unable to reach
an agreement an arbitrator will determine the fair market fee.

In return for providing us with strategic and administrative services, our
Manager is entitled to a service fee not exceeding a maximum of $6,000 per month, and to reimbursement for all of the reasonable costs and expenses incurred by it and its affiliates in providing us with such services. Our Manager provides these
services to us directly but may subcontract certain of these services to other entities, including its affiliates. The management agreement provides that we have the right to audit the costs and expenses billed to us and also provides for a third
party to settle any billing disputes between us and our Manager.

In connection with providing us with strategic services, our Manager has
acquired 100 incentive shares for $1,000. The incentive shares are entitled to a share of incremental dividends, based on specified sharing ratios, once dividends on our common and subordinated shares reach certain specified targets beginning with
the first target of $0.485 per share. Under the terms of the management agreement, we have the right to reacquire the incentive shares from our Manager at a nominal price under specified circumstances and we have the obligation to reacquire them at
a price determined by independent parties under other specified circumstances.